Abdulsalam’s Integrated Energy Wins Bid to Acquire Three Electricity Distribution Companies
Integrated Energy Distribution and Marketing Limited, a firm in which the former Head of State, Gen. Abdusalami Abubakar, is the chairman, is in the lead to acquire three of the juiciest electricity distribution companies in the country. The electricity distribution companies are Eko, Ikeja and Ibadan.
But one of the rules of privatization states that no company can be allowed to win more than two bids.
In addition, no company will be allowed to win both the Ikeja and Eko Electricity Distribution Companies, which collectively generate about 45 per cent of the total revenue of the Power Holding Company of Nigeria.
Based on the rules, the National Council on Privatisation, led by Vice-President Namadi Sambo, will still subject the top contenders to scrutiny before announcing the eventual winners.
The Chairman, Technical Committee, NCP, Mr. Atedo Peterside, said successful bidders were contractually bound to deliver on the Average Technical, Commercial and Collection loss reduction levels they had submitted.
Peterside said, “The bidder offering the highest ATC&C loss reduction is in a leading position subject to the ground rules. The regulator will not adjust tariffs upwards to accommodate the inability of a Disco operator to deliver on the ATC&C levels that they commit to; rather tariffs will be adjusted downward annually to reflect the agreed ATC&C loss levels irrespective of the operator’s ability to meet its contractual obligation.”
Instead of allowing the bidders to compete based on their financial strengths, they were evaluated based on ATC&C loss reduction proposals. The eventual winners will have to pay 60 per cent of the asset worth of the companies as determined earlier by the Nigerian Electricity Regulatory Commission.
However, going by the strategy adopted, the Federal Government will realise N197.25bn at the end of the sale of the 10 companies, whose bids were opened on Tuesday.
A breakdown shows that N25.79bn will be realised from the sale of Abuja Electricity Distribution Company; N20.23bn from the Benin Electricity Distribution Company; N21.19bn from Eko Electricity Distribution Company; and N19.81bn from the Enugu Electricity Distribution Company.
Others are N26.51bn from the Ibadan Electricity Distribution Company; N20.64bn from the Ikeja Electricity Distribution Company; N12.86bn from the Jos Electricity Distribution Company; N21.44bn from the Kano Electricity Distribution Company; N19.51bn from the Port Harcourt Electricity Distribution Company; and N9.31bn from the Yola Electricity Distribution Company
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